HEARINGS BEFORE A SPECIAL COMMITTEE INVESTIGATING EXPENDITURES IN SENATORIAL PRIMARY AND GENERAL ELECTIONS UNITED STATES SENATE SEVENTIETH CONGRESS FIRST SESSION PURSUANT TO S. Res. 195 (69th Congress, 1st Session) A RESOLUTION AUTHORIZING THE PRESIDENT OF 81581 JANUARY 7, 1928 ᏢᎪᎡᎢ 7 Printed for the use of the Special Committee Investigating UNITED STATES WASHINGTON 1928 SPECIAL COMMITTEE INVESTIGATING CAMPAIGN EXPENDITURES JAMES A. REED, Missouri, Chairman WILLIAM H. KING, U12 CHARLES L. MCNARY, Oregon. GUY D. GOFF, West Virginia. ROBERT M. LA FOLLETTE, JR., Wisconsin, SENATORIAL CAMPAIGN EXPENSES SATURDAY, JANUARY 7, 1928 UNITED STATES SENATE, SPECIAL COMMITTEE ON EXPENDITURES IN SENATORIAL ELECTIONS, Washington, D. C. The special committee met pursuant to call at 10 o'clock a. m., in room 212, Senate Office Building, Senator James A. Reed presiding. Present, Senators Reed of Missouri (chairman), McNary, King, and La Follette. The CHAIRMAN. The following two resolutions relating to this committee will be printed as a part of this hearing. (The resolutions referred to are as follows:) [S. Res. 1, Seventieth Congress, first session] Whereas on the 17th day of May, 1926, the Senate passed a resolution creating a special committee to investigate and determine the improper use of money to promote the nomination or election of persons to the United States Senate, and the employment of certain other corrupt and unlawful means to secure such nomination or election. Whereas said committee in the discharge of its duties notified Frank L. Smith, of Illinois, then a candidate for the United States Senate from that State, of its proceeding, and the said Frank L. Smith appeared in person and was permitted to counsel with and be represented by his attorney and agents. Whereas the said committee has reported— That the evidence without substantial dispute shows that there was expended directly or indirectly for and on behalf of the candidacy of the said Frank L. Smith for the United States Senate the sum of $458,782; that all of the above sum except $171,500 was contributed directly to and received by the personal agent and representative of the said Frank L. Smith with his full knowledge and consent; and that of the total sum aforesaid there was contributed by officers of large public-service institutions doing business in the State of Illinois or by said institutions the sum of $203,000, a substantial part of which sum was contributed by men who are nonresidents of Illinois, but who were officers of Illinois publicservice corporations. That at all of the times aforesaid the said Frank L. Smith was chairman of the Illinois Commerce Commission, and that said public-service corporations commonly and generally had business before said commission, and said commission was, among other things, empowered to regulate the rates, charges, and business of said corporations. That by statutes of Illinois it is made a misdemeanor for any officer or agent of such public-service corporations to contribute any money to any member of said commission, or for any member of said commission to accept such moneys upon penalty of removal from office. That said Smith has in no manner controverted the truth of the foregoing facts, although full and complete opportunity was given to him, not only to present evidence but arguments in his behalf; and Whereas the said official of said committee and the sworn evidence is now and for many months has been on file with the Senate, and all of the said facts appear without substantial dispute: Now, therefore, be it Resolved, That the acceptance and expenditure of the various sums of money aforesaid in behalf of the candidacy of the said Frank L. Smith is contrary to sound public policy, harmful to the dignity and honor of the Senate, dangerous to the perpetuity of free government, and taints with fraud and corruption the credentials for a seat in the Senate presented by the said Frank L. Smith; and be it further Resolved, That the claim of the said Frank L. Smith to a seat in the United States Senate is hereby referred to the said special committee of the Senate. with instructions to grant such further hearing to the said Frank L. Smith and to take such further evidence on its own motion as shall be proper in the premises, and to report to the Senate at the earliest possible date; and that until the coming in of the report of said committee and until the final action of the Senate thereon the said Frank L. Smith be, and he is hereby, denied a seat in the United States Senate: Provided, That the said Frank L. Smith shall be accorded the privileges of the floor of the Senate for the purpose of being heard touching his right to receive the oath of office and to membership in the Senate. [S. Res. 10, Seventieth Congress, first session] Resolved, That a resolution of the United States Senate agreed to on May 19 1926, numbered Senate Resolution 195 of the Sixty-ninth Congress, first session. creating a special committee to investigate expenditures in senatorial primary and general elections, and all subsequent resolutions dealing with the said special committee and agreed to by the United States Senate during the Sixty-ninth. Congress (to wit: S. Res. 227, S. Res. 258, and S. Res. 324), have continued in full force and operation since the dates of their respective enactment by the Senate, and do now, as then, express the will of this body. And that the said special committee appointed pursuant to said Senate Resolution 195 of the Sixty-ninth Congress, first session, shall continue to executi the directions of the said several resolutions relating to the said committee until the Senate accepts or rejects the final report of the said special committee or otherwise orders. The CHAIRMAN. This committee meets primarily to-day for the purpose of carrying out the directions in Senate Resolution 1 of the Seventieth Congress, and particularly that clause which reads as follows: Resolved, That the claim of the said Frank L. Smith to a seat in the United States Senate is hereby referred to the said special committee of the Senate with instructions to grant such further hearing to the said Frank L. Smith ard to take such further evidence on its own motion as shall be proper in the premises and to report to the Senate at the earliest possible date; and that until the coming in of the report of said committee and until the final action of the Senate thereor the said Frank L. Smith be, and he is hereby, denied a seat in the United States Senate: Provided, That the said Frank L. Smith shall be accorded the privilege of the floor of the Senate for the purpose of being heard touching his right to receive the oath of office and to membership in the Senate. In accordance with the command of that clause we have met to-day. After the resolution was passed, a meeting of this committee was held and by authority of the committee the following telegram was sent to Mr. Smith dated December 13, 1927: Hon. FRANK L. SMITH, Dwight, Ill. DECEMBER 13, 1927. The special committee at its meeting this morning agreed to take up and consider your case at the earliest possible time in which you are prepared to procee“. The committee suggests and would like to hold its meeting beginning Friday December 16. If you can be ready on that date, please wire immediately t that effect. If this is not possible, then indicate at once the earliest possible datr when you can be in readiness. In this connection the committee will accord you ever privilege to submit such evidence, produce such witnesses as you desire, and will be pleased to hear any statement which you may care to make either in person or by counsel. The committee will also accord you the full privileg of representation by counsel. Your earliest possible reply is solicited. JAMES A. REED, Chairman In response to that the committee received a telegram dated December 14, 1927, from Mr. Smith, which is as follows: Hon. JAMES A REED, United States Senate, Washington, D. C. CHICAGO, ILL., December 14, 1927. I have for acknowledgment your telegram of yesterday indicating the special committee of the United States Senate to which my right to take the oath of office as Senator elect has been referred would consider my case first and suggesting Friday of this week or an early convenient date thereafter. It will not be possible for me to make appearance the 16th as time is too short. It is generally understood that Congress will recess early next week for the holidays and with this in view may I suggest a day be fixed agreeable to your committee for my appearance immediately after the holiday recess. Your advices as to the day appointed with these suggestions in mind will be appreciated. Please answer Dwight, Ill. FRANK L. SMITH. Upon receipt of that telegram from Mr. Smith, the committee again held a meeting, and in accordance with the instructions of the committee a telegram dated December 17, was sent by the chairman of the committee to Mr. Smith, which reads as follows: DECEMBER 17, 1927. Hon. FRANK L. SMITH, Dwight, Ill.: In accordance with the decision of the special committee, I hereby notify you that in accordance with your request that a date be fixed after the holidays, a hearing will be held at 10 o'clock, January 7, 1928, in order that you may be heard in the manner stated to you in committee telegram dated December 13. JAMES A. REED, Chairman. The committee is here this morning primarily for the purpose of hearing Mr. Smith, and Mr. Smith, I believe, is now present. Mr. SMITH. Yes, sir. The CHAIRMAN. And I presume he has some matters that he desires to submit to the committee. Is that correct? Mr. DOYLE. Mr. Chairman, would you like our representation for the record? The CHAIRMAN. Yes; I was going to ask for that. Mr. DOYLE. Senator-elect Frank L. Smith of Illinois; Attorney General Oscar E. Carlstrom of Illinois; the delegation on the constitutional rights of Illinois represented by State Senator John Dailey as chairman; the president pro tempore of the Illinois Senate, Richard J. Barr; Speaker Robert Scholes of the House of Representatives of Illinois; Representative Reed F. Cutler, and Representative Gus J. Johnson of the house; and C. J. Doyle as personal counsel of Senatorelect Smith; and of course we are accompanied this morning by the senior Senator from Illinois, Charles F. Deneen. We had understood, Mr. Chairman, there was another matter which the committee desired to dispose of that might not take very much time, and it would be perfectly agreeable with Senator Smith, if that arrangement is best suited for the dispatch of business this morning; or, we are willing to proceed in our matter, at the further direction of the committee. The CHAIRMAN. I understand, then, that it is perfectly agreeable to Mr. Smith that we proceed with the other matter, which is the further hearing of Mr. Însull and his attorney, Mr. Schuyler. Mr. DOYLE. It will be agreeable. I should like also to suggest, if I may, to the committee, that we have an extraordinary session of the Illinois General Assembly for Tuesday next, and the gentlemen who are here who happen to be State Senators and members of the |